Evolution Of Management Theory Thought Commerce Essay

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"Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims." (Weihrich)

Management in other words can be said as a practice of consciously and continually shaping of an organisation. Managers play an important role in the practice of management. Management is required in all kind of business it can be a profit making organisation or a non- profit organisation. Management helps an organisation to achieve goals. Managers play an important role in management. Managers are people who are responsible for directing the efforts aimed at helping organisations achieve their goals. Management has different characteristics as following-

• Management is all pervasive

• Management is a continuous process:

• Management is a dynamic function

• Management is a group activity:

• Management is an intangible force

• Management is goal-oriented process

Management is required in all organisations whether it is profit or non profit or it is small or big. There are different positions of manager such first line managers, middle managers and top managers. Each manager has a different function such as-

First- line Managers-They are the people who are responsible for all the operative activities in an organisation.

Middle Managers- They are the middle men between the first line managers and the top class managers.

Top Managers- These are managers not only make all the policies of an organisation but also does the major decision making for the organisation.

Evolution of Management Theory (Thought)


Management and organization is the product of social and historical times and places. The first known management ideas were recorded in 5000 BC when Sumerians developed dealer written records for government and commercial use. The management application is also evident in the Egyptian civilization and in 4000-3000 BC. The pyramids of Egypt with millions of stone blocks that are built, the services of people the testimonies of a coordinated effort to extremely large scale. Creating these huge structures would certainly extensive planning, decision making, organization of men and materials, and monitoring was required. `

The Romans also made ​​significant contribution to the management, which is reflected in the Western military hierarchy and public administration systems. It would have been impossible to manage the largest Roman Empire without application of sound principles. Several writers in the field of governance and administration of the kingdom of man created a literature that helped in the development of modern management theories.



In supporting daily management ideas, several authors have designed a work context

Sun Tzu the Art of War

Sun Tzu was a Chinese general, who wrote in the sixth century BC: "The Art of War," a book on the management scheme infantry who are aware of and act on its strengths and shortcomings strikes based federation as a manager and the enemy.

Chanakya Arthashastra

Chanakya in 300 BC, wrote the "Arthashastra" in various strategies, techniques and management theories written, which gave an account of the management of empires, economy and family. Latest works of Machiavelli is often compared to this work.

Niccolo Machiavelli, the Prince

With the belief that people who have been inspired by self-interest, in 1513 "The Prince" by Niccolo Machiavelli was written as advice to the city of Florence, Italy. It is recommended that managers use disgust concern, but not to maintain the order.

Adam Smith is the wealth of the nation

A Scottish moral philosopher Adam Smith wrote in 1776, "The wealth of the nation" who is working on the effective partnership working through specialization should. We counted the productivity gains in the construction of the pins with the help of changes in methods. While people could only produce 200 pins per day, we analyzed the steps in building with 10 experts involved with the production of 48,000 pins per day.

Effect of the Industrial Revolution on Management

The industrial revolution made a significant contribution to the development of management thinking before 20th Century. The growing size and complexity of business organizations led to the need for managers to address various business-related tasks, such as evaluating the demand for goods, ensuring the availability of resources, assigning tasks to workers factory, production and sale of goods and service quality standards, etc.

Major Schools of Management Thought

Mainly all, the School of Management refers to the main theories of management. Many authors have described the management schools. Important are schools are as followed:

Classical School

Behavioural School

System School

Contemporary School

Contingency School

Classical School

The classical school of thought developed in the last 1800s and early 1900s and continued in the 1920s. The traditional management approach to achieving efficiency and productivity in an organizational context. The predominant features of the various classical theories are as follows:

The focus was on the economic rational of the individual employee. It was based on the assumption that the people that practice that would choose to maximize their economic reward based. This approach, which was an extension of Adam Smith's ideology, advocated the provision of financial incentives for employees to work hard to realize their true potential.

The assumptions of the classical theorists generally have negative views of human nature in terms of performance roles and responsibilities in an organizational setting. Although these assumptions are, to a certain extent, the classical theorists ignored the positive aspects.

The classical theorists recognized that people have emotions, but they felt the emotions that could be controlled by a logical and rational structuring of jobs and work\


The behaviorist school of thought arose in part because the classical approach does not achieve sufficient production efficiency and workplace harmony. For Manager Frustration that people do not always follow forecasted or expected patterns of behavior. Interest in what had grown managers more effectively addresses the "human side" of their organizations. Several theorists tried to strengthen classical organization theory with ideas from sociology and psychology.

School generally deals behavioral relationships. The relationship is often used as a general term to describe how managers interact with their employees. If "people management" encourages more and better work, the organization has effective human relations, if they worsen morale and efficiency, human relationships are said to be ineffective. The human relations movement arose from the beginning tried to systematically explore the social and psychological factors that generate cash, because relationships do.

According to Maslow, the needs that human are motivated to fall into a hierarchy of meeting. Physical requirements and security are at the bottom of the hierarchy, and at the top are the needs of the ego and self-actualizing needs. In general, lower levels Maslow said needs must be satisfied before higher needs can be met. Because many lower-level needs are met routinely in today's society, most people are more motivated by the highest level ego and self-actualizing needs.

System School

Instead ordered separately with the various segments of an organization, system approach to management considers the organization as a unified system, compared with interrelated parts. This approach provides administrators the ability to see the organization as a whole and as part of the wider external environment. Systems theory tells us that the activity of all other segments of an organization relates to a different extent, the activity of all other segments.

Production manager. In a manufacturing plant, for example, rather long, uninterrupted production runs of standardized products in order to maintain maximum efficiency and low cost. Marketing Manager, on the other hand, they offer their customers fast delivery of a wide range of products will want a flexible manufacturing calendar can fulfill special orders at short notice.

Contingency School

The contingency plan approach is also known as the situational approach was developed by managers, consultants and researchers who have tried to apply the concepts of the major schools to real situations. It was evolved in 1960's which strongly emphasized on different approach of administration for distinct kinds of enterprise environments and does not have a single approach in its idea. If the working method is not very effective in a situation in other situations, sought an explanation. After the contingency approach the task manager is to know, is that technology, at a particular time, best contribute to the achievement of management objectives. Employees are encouraged to increase productivity should be, for example, the classical theorists prescribe a new scheme of work simplification.


The different historical theory of management gives us a clear view of current theories of the management of historical theories of different people with different ideas and techniques used today, created in partnership with a number of changes. While schools are considering various management theories, such as: - classical techniques, human relations, human relations and neo-contingency allocated to various factors taken to improve the organization's objectives and profits of the division of work, a wide range of control, a large organization, the authoritarian style, time management, natural environment for employees, community interaction, motivation, psychological and environmental.


As the organizations need to accomplish some goals so firstly it needs to define those goals and then the means to achieve it. All managers in the firm dream of increasing sales and to achieve goals. But to turn these dreams into reality they have to look some of the functions. These functions are as follows:-

Planning :

"Planning is deciding in advance what to do, how to do and who is to do it. Planning bridges the gap between where we are to, where we want to go. It makes possible things to occur which would not otherwise occur'' (Weihrich)

Planning means deciding in advance what to do and how to do it. It is a basic managerial function. Before performing a task a manager should formulate an idea of how to work on a particular task. Planning is closely related with creativity and innovation. Planning seeks to bridge the gap between where we are and where we want to go. Planning is not only done by managers at the top level but it is performed at all the levels of an organization. It involves decision making because as a manager you have to choose one alternative course of action.


Planning is a primary function of management. All other managerial function are performed within the framework of the plans drawn.

Planning is pervasive. Planning is required at all levels of management as wellas in all departments of the hotel.

Planning focuses in achieving goals. Every hotel or restaurant is set up with a purpose in view. Specific goals are set out in the plans along with the activities to be undertaken to achieve the goals.

Planning is continuous. Plans are prepared for a specific period of time, may be for a month, a quarter or a year.

Planning is a mental exercise. Planning requires application of the mind involving imagination and sound judgment.


Setting Objectives :

The first and foremost step in planning process is to set the organizational objectives. Every hotel or restaurant must have goals. Objectives may be set for the whole hotel or for certain department in the hotel. Objectives and goals specify what the hotel wants to achieve.

Developing Premises :

Planning is concerned about future and everybody knows that future is uncertain. Therefore the manager is required to make certain assumption and these assumptions are called premises. Planning premises can be internal or external. Internal premises are controllable , they include capital investment policy, labour relations, philosophy of management while External premises are non- controllable include socio- economic, political and economical changes.

Identifying alternative courses of action :

Once the objectives are set and assumption are made. The next step in planning process is to identify the alternative course of action. If the manager can see some threats in the future he/she has to act upon them. There can be many ways to act and achieve goals. All the alternative courses should be identified.

Evaluating alternative courses :

Once the alternatives have been identified the next step is to evaluate them. In this step manager has to check whether this alternative is feasible or not. Each course will have many variables which have to be weighed against each other. The negative and positive point of each proposal need to be evaluated against the objective to be achieved.

Selecting an alternative :

This is the point where manager have to take decision regarding the alternative. The best plan has to be adopted and implemented. The ideal plan would be feasible, profitable and with least negative consequences.

Implement the plan :

This step where the manager has to implement its best plan and it also involves other managerial function. The step is concerned with putting the plan into action. For example: If the Food and Beverage manager plans to increase the wine sales then he will be organizing the wine sessions for the staff and later will select the suitable employee for it.

Follow-up action :

This step involves monitoring the plans to ensure that objectives are achieved. It also states that checking the activities are performed according to the schedule. (NCERT, 2008)

Planning in a hotel

In a hotel planning is done by managers to identify, set goals and how to achieve the goals. Planning tells where you are, what plans you have now, where will you want to be in the future and how to achieve these plans. Planning helps an organisation to become more effective and efficient with minimum utilisation of resources. In a hotel managers have to sit together and decide what are its long term goals and the short term goals which will help them to achieve the main goals. Planning is required in all departments. E.g.:- How to achieve daily budget also requires planning. Managers need to make decision and for decision making planning is required. Planning cannot help a hotel to prevent problem but proper planning can predict them and make plans to deal with them if and when they occur.


"Organising is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives." (Allen)

After planning is done, the next function that organization has to perform is to organize the resources to achieve the objectives. Organising simply means a process which coordinates human efforts and assembling resources and combining both for achieving specified objectives.

Organising leads to a systematic allocation of jobs amongst the work force. If a person is doing the entire task all alone it will increase the workload and decrease the productivity. Organising also helps in formation of relationships among the employees. It means it clarifies lines of communication and specifies who is to report to whom. Organizing helps in optimum utilisation of materials, finance and human resources.


Identification and division of work :

This step in organizing process involves identifying and dividing the work that has to be done accordingly keeping in mind the plans. As the work is divided between people is avoids burden and improves efficiency.

Departmentalization :

Once the work is divided among the employees then the next step is to group the similar activities. Such grouping of task leads specialization. This group is called a department. E.g.:- In a hotel all the work related to the room maintenance is taken care by the housekeeping department.

Assignment of duties :

It is very important for the hotel to assign the jobs to the employees. Once the department have been formed, each of them is placed under the charge of an individual. Jobs are allocated keeping in mind their skills and competencies. For example: if a new employee joins the ABC Hotel and if he is good in taking check-in and check-out then he will allocated in front office department.

Establishing reporting relationship :

It is very important that every person should not only know his work but also know from whom he is suppose to take orders from and to whom he is accountable

Organization Example in a Hotel-

If in a hotel whenever a check- in takes place then the front office staff needs to organize itself in various positions like concierge desk, travel desk reception, welcoming the guest, offering them welcoming drinks and escorting the guest to their rooms, so that there is no confusion and the guest need not wait standing in the lobby and proper organizing will help in achieving the main goal i.e. Customer satisfaction.

Leading :

"Leadership is the art or process of influencing people so that they will strive willingly and enthusiastically towards the achievement of group goals.'' (Weihrich)

Leaders always play a key role in the success and excellence of an organization. A leader should have the qualities to influence the behavior of people. Leading indicates the ability to maintain relations with the followers and motivate them to contribute for achieving organizational goals.

The task of the leader is to get his people from where they are to where they have not been.

Leadership is not a job it is a quality that can be bought to a job. Leadership is related to someone ability to motivate others and manage interpersonal behaviour. Good leadership involves effective delegation of power and authority. Leadership is a dynamitic process and a two way process.

Qualities of a Good Leader

1. Physical features- Good physical features like height, weight, health, appearance tell us about the physical personality of an individual. Health and endurance can help a leader to work. E.g. Grooming plays a important role, it makes a leader look mare presentable.

2. Knowledge-A good leader must know his work, only then he can instruct his subordinates or influence them. E.g. A restaurant manager, who is leader to all his stewards, must have full knowledge about his work.

3. Integrity- A leader should posses high level of integrity and honesty, this will make him a role model for his subordinates

4. Initiative-Courage and initiative are two important qualities that a leader must have.

5. Communication skills- A leader must be a good orator. He should be able to clearly explain his ideas and make the people to understand his ideas. E.g. Human resources manager should have good communication skills so that he can interact with the employees and understand them.

6. Motivation skills- A leader should be a motivator. He should be able to understand the needs of people and motivate them through satisfying their needs.


Leading influences the behavior of the people and makes them to positively contribute their skills for the benefit of the hotel.

Leading helps to maintain the relationship with its followers and help them to fulfill their needs.

It helps in introducing the changes in the hotel if required.

Leading helps in handling conflicts and doesn't allow its effect to affect the hotel.

Leading helps in training the subordinates. A good leader always builds up his successor. (NCERT, 2008) (Functions of Management)

Leading Example-Rose Marie Bravo was a good manager because she was good at influencing other individuals in the organization agree to her transformational strategic vision for Burberry and she was brilliant at influencing, directing and motivating the employees.


"Managerial Control implies the measurement of accomplishment against the standard and the correction of deviations to assure attainment of objectives according to plans." (Weihrich)

Controlling is one of the important functions of a manager. Controlling simply means that activities in an organization are performed according to the plans. It also ensures that in order to achieve goals resources are efficiently and effectively used. Controlling is a pervasive function of manager and it's a primary function of manager. Managers at all levels need to perform this function in order to keep a control over the activities. It guides the organization and keep it on the right track so that organizational goals are achieved.


Setting performance standard :

Setting up standards is very important for controlling. E.g. in a luxury hotel there is a slandered for food quality which has to be maintained. Standards can be set both qualitative and quantitative terms

Measurement of actual performance :

Once performance standards are set, next step is to measure the actual performance. Performance should be measured keeping in mind the objective of the hotel. There are several tools for measuring the performance of the individual. These include personal observation, sample checking, performance reports, etc. In hotels feedback forms and audits are ways of checking if the hotels have met it standards

Comparison of actual performance :

This step involves comparison of actual performance with the standard performance. Such comparison will reveal the deviation between the actual and desired results.

Analyzing deviation :

If there is any deviation then it has to be analyzed. It is possible that deviation are expected in all activities. If the deviations are in key areas then they have to be attended first instead of attending deviation in key areas.

Taking Corrective Action :

The final step in controlling process is taking corrective action. If there is no deviation then no corrective action plan is required. However, if the deviation are beyond the acceptable limits, especially in the key areas, it demands immediate action. (Functions of Management) (NCERT, 2008)


If a hotel plans in its budget to increase their revenue for a particular month so it has to see that the employees should strive to achieve the set goals and monitor if the employees are able to achieve the target and if they are not what problems they are facing (like an employee is not able to adjust in the working environment) and taking measures to rectify their problems.

Controlling in a hotel is very crucial, it helps to know what company aims for and where does it stand.It helps a hotel to know whare it whent wrong and what it has to do for improvement.Eg feedback form filled gy guest in a hotel will help a hotel to know how it can improve its services.


All the functions of management i.e. planning, organizing, controlling and leading are very essential in an organization to maintain the smooth work flow and if these are not followed in a correct manner it can lead to various issues like loss of the organization's control over its employees, and the human capital (knowledge and ability of an individual) will be lost and no incentives will be provided to the employees which can lead to a situation of calamity for the organization.


The functions of Management play a very important role, each function differed from each other and is incomplete without each other. Organization need to follow all four steps .i.e. planning, organizing, leading and controlling to become successful. Planning helps in knowing what to do and how to do, organizing leads to dividing the work between people, Leading is the art of getting the work done and controlling helps to know what they were suppose to do, what they have done and what can they do to improve and be more efficient. A hotel also implements all functions of management to be a success.